COMMENT | Some poorly appreciated dangers of the CPTPP

COMMENT | Article 9.4 (1) in the Investment Chapter of the CPTPP (Comprehensive and Progressive Trans-Pacific Partnership) specifies that as follows:

“Each party shall accord to investors of another party treatment no less favourable than that it accords, in like circumstances, to its own investors with respect to the establishment, acquisition, expansion, management, operation and sale of investments in its territory”.

This is termed “national treatment”. If Malaysia fails to treat the foreign firm equally, then that company can drag us to an international tribunal under the ISDS (Investor-State Dispute Settlement) provisions of the CPTPP, and demand hefty compensation.